Facebook shares rise sharply as Zuckerberg deters regulation talk

WASHINGTON/SAN FRANCISCO, April 10 (Reuters) - Facebook Inc shares posted their biggest daily gain in nearly two years on Tuesday as Chief Executive Mark Zuckerberg fended off questions from U.S. senators on how the world's largest social network might be regulated more closely.

Zuckerberg repeated apologies made on Monday for a range of problems that have beset Facebook, from data privacy to foreign attempts to influence U.S. elections, but the 33-year-old internet mogul managed to deter any specific talk about new laws and made no new promises.

"I’ll have my team follow up with you so that way we can have this discussion across the different categories where I think this discussion needs to happen," Zuckerberg told a joint hearing by the U.S. Senate's Commerce and Judiciary committees, when asked what regulations he thought were necessary.

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Facebook CEO Mark Zuckerberg testifies before Congress

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Facebook CEO Mark Zuckerberg testifies before Congress

WASHINGTON, DC - APRIL 10: Facebook co-founder, Chairman and CEO Mark Zuckerberg arrives to testify before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC. Zuckerberg, 33, was called to testify after it was reported that 87 million Facebook users had their personal information harvested by Cambridge Analytica, a British political consulting firm linked to the Trump campaign. (Photo by Chip Somodevilla/Getty Images)

Facebook CEO Mark Zuckerberg arrives to testify before a House Energy and Commerce Committee hearing regarding the company?s use and protection of user data on Capitol Hill in Washington, U.S., April 11, 2018. REUTERS/Leah Millis

Facebook CEO Mark Zuckerberg arrives to testify before a House Energy and Commerce Committee hearing regarding the company?s use and protection of user data on Capitol Hill in Washington, U.S., April 11, 2018. REUTERS/Leah Millis

Facebook CEO Mark Zuckerberg testifies before a House Energy and Commerce Committee hearing regarding the company?s use and protection of user data on Capitol Hill in Washington, U.S., April 11, 2018. REUTERS/Leah Millis

Mark Zuckerberg, chief executive officer and founder of Facebook Inc., waits to begin a joint hearing of the Senate Judiciary and Commerce Committees in Washington, D.C., U.S., on Tuesday, April 10, 2018. Lawmakers will grill Zuckerberg on issues ranging from the troves of data vacuumed up by app developers and political consultant Cambridge Analytica to Russian operatives' use of the social network to spread misinformation and discord during the 2016 U.S. presidential election. Photographer: Andrew Harrer/Bloomberg via Getty Images

WASHINGTON, DC - APRIL 10: Facebook co-founder, Chairman and CEO Mark Zuckerberg arrives to testify before a combined Senate Judiciary and Commerce committee hearing in the Hart Senate Office Building on Capitol Hill April 10, 2018 in Washington, DC. Zuckerberg, 33, was called to testify after it was reported that 87 million Facebook users had their personal information harvested by Cambridge Analytica, a British political consulting firm linked to the Trump campaign. (Photo by Chip Somodevilla/Getty Images)

Facebook CEO Mark Zuckerberg listens while testifying before a joint Senate Judiciary and Commerce Committees hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Millis

Facebook CEO Mark Zuckerberg takes a drink while testifying before a Senate Judiciary and Commerce Committees joint hearing regarding the company?s use and protection of user data on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Alex Brandon/Pool

Facebook CEO Mark Zuckerberg takes a drink while testifying before a Senate Judiciary and Commerce Committees joint hearing regarding the company?s use and protection of user data on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Alex Brandon/Pool

Facebook CEO Mark Zuckerberg testifies before a joint Senate Judiciary and Commerce Committees hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018.

Facebook CEO Mark Zuckerberg sits down following a break to resume testifying before a joint Senate Judiciary and Commerce Committees hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Millis

Facebook CEO Mark Zuckerberg sits down following a break to resume testifying before a joint Senate Judiciary and Commerce Committees hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Millis

Senator John Kennedy (R-LA) listens as Facebook CEO Mark Zuckerberg testifies before a joint Senate Judiciary and Commerce Committees hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Millis

Senator John Kennedy (R-LA) (L) looks on as Senator Lindsey Graham (R-SC) holds up the privacy agreement of Facebook as its CEO Mark Zuckerberg testifies before a joint Senate Judiciary and Commerce Committees hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Millis

Facebook CEO Mark Zuckerberg responds to a question about his own personal information becoming public as he testifies before a joint Senate Judiciary and Commerce Committees hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Millis

Facebook CEO Mark Zuckerberg is surrounded by members of the media as he arrives to testify before a Senate Judiciary and Commerce Committees joint hearing regarding the company?s use and protection of user data, on Capitol Hill in Washington, U.S., April 10, 2018. REUTERS/Leah Millis TPX IMAGES OF THE DAY

WASHINGTON, DC - APRIL 09: Facebook CEO Mark Zuckerberg (2 L) arrives at a meeting with U.S. Sen. Bill Nelson (D-FL), ranking member of the Senate Committee on Commerce, Science, and Transportation, April 9, 2018 on Capitol Hill in Washington, DC. Zuckerberg is scheduled to testify before a few Congressional committees this week on the mass users data Facebook has shared with political operatives. (Photo by Alex Wong/Getty Images)

UNITED STATES - APRIL 9: Facebook CEO Mark Zuckerberg arrives for his meeting with Sen. Bill Nelson, D-Fla., in the Hart Senate Office Building on Monday, April 9, 2018. Zuckerberg is on Capitol Hill to testify before the House and Senate this week. (Photo By Bill Clark/CQ Roll Call)

Mark Zuckerberg and Andrea Besmehn, Mark Zuckerbergs executive assistant at Facebook depart US Senator Bill Nelson's, D-Florida, office on Capitol Hill in Washington, DC, on April 9, 2018.
Embattled Facebook chief Mark Zuckerberg has placed the blame for security lapses at the world's largest social network squarely on himself as he girded Monday for appearances this week before angry lawmakers.In prepared remarks released by a congressional panel, Zuckerberg admitted he was too idealistic and failed to grasp how the platform -- used by two billion people -- could be abused and manipulated.
/ AFP PHOTO / JIM WATSON / The erroneous mention[s] appearing in the metadata of this photo by JIM WATSON has been modified in AFP systems in the following manner: [Andrea Besmehn (R), Mark Zuckerbergs executive assistant at Facebook] instead of [Priscilla Chan]. Please immediately remove the erroneous mention[s] from all your online services and delete it (them) from your servers. If you have been authorized by AFP to distribute it (them) to third parties, please ensure that the same actions are carried out by them. Failure to promptly comply with these instructions will entail liability on your part for any continued or post notification usage. Therefore we thank you very much for all your attention and prompt action. We are sorry for the inconvenience this notification may cause and remain at your disposal for any further information you may require. (Photo credit should read JIM WATSON/AFP/Getty Images)

WASHINGTON, DC - APRIL 09: Facebook CEO Mark Zuckerberg (C) leaves after a meeting with U.S. Sen. Bill Nelson (D-FL), ranking member of the Senate Committee on Commerce, Science, and Transportation, April 9, 2018 on Capitol Hill in Washington, DC. Zuckerberg is scheduled to testify before a few Congressional committees this week on the mass users data Facebook has shared with political operatives. (Photo by Alex Wong/Getty Images)

WASHINGTON, DC - APRIL 09: Facebook CEO Mark Zuckerberg (3rd L) leaves after a meeting with U.S. Sen. Bill Nelson (D-FL), ranking member of the Senate Committee on Commerce, Science, and Transportation, April 9, 2018 on Capitol Hill in Washington, DC. Zuckerberg is scheduled to testify before a few Congressional committees this week on the mass users data Facebook has shared with political operatives. (Photo by Alex Wong/Getty Images)

Mark Zuckerberg, chief executive officer and founder of Facebook Inc., exits after a meeting with Senator Dianne Feinstein, a Democrat from California, not pictured, on Capitol Hill in Washington, D.C., U.S., on Monday, April 9, 2018. Zuckerberg, in prepared testimony for the U.S. House of Representatives, said all of Facebook's problems are his mistake. Photographer: Yuri Gripas/Bloomberg via Getty Images

WASHINGTON, DC - APRIL 09: Facebook CEO Mark Zuckerberg (C) leaves the office of Sen. Dianne Feinstein (D-CA) after meeting with Feinstein on Capitol Hill on April 9, 2018 in Washington, DC. Zuckerberg is meeting with individual senators in advance of tomorrow's scheduled hearing before the Senate Judiciary and Commerce committeees. Zuckerberg is under pressure to explain why tens of millions of Facebook user's private information was shared with Cambridge Analytica. (Photo by Win McNamee/Getty Images)

WASHINGTON, DC - APRIL 09: Facebook CEO Mark Zuckerberg (C) leaves the office of Sen. Dianne Feinstein (D-CA) after meeting with Feinstein on Capitol Hill on April 9, 2018 in Washington, DC. Zuckerberg is meeting with individual senators in advance of tomorrow's scheduled hearing before the Senate Judiciary and Commerce committeees. (Photo by Win McNamee/Getty Images)

WASHINGTON, DC - APRIL 09: Facebook CEO Mark Zuckerberg (3rd L) leaves after a meeting with U.S. Sen. Bill Nelson (D-FL), ranking member of the Senate Committee on Commerce, Science, and Transportation, April 9, 2018 on Capitol Hill in Washington, DC. Zuckerberg is scheduled to testify before a few Congressional committees this week on the mass users data Facebook has shared with political operatives. (Photo by Alex Wong/Getty Images)

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He denied that Facebook, which has more than 2 billion monthly users across the world, was a monopoly. "It certainly doesn't feel that way to me," Zuckerberg said.

Wearing a dark suit and tie instead of his typical T-shirt and jeans, Zuckerberg appeared largely unruffled as senators questioned him. Investors welcomed his performance.

"Zuckerberg is conciliatory in his presentation," said Mariann Montagne, portfolio manager at Gradient Investments in Arden Hills, Minnesota. "The stock is running up on his comments. Maybe people like seeing Zuckerberg in a suit.”

Facebook shares closed up 4.5 percent at $165.04, their highest level in almost three weeks. It was their largest daily gain since April 28, 2016.

The shares fell steeply last month after it came to light that millions of users' personal information was harvested from Facebook by Cambridge Analytica, a political consultancy that has counted U.S. President Donald Trump's election campaign among its clients. The latest estimate of affected users is up to 87 million.

CRISIS OF CONFIDENCE

That disclosure pitched Facebook into a crisis of confidence among users, advertisers, employees and investors who were already struggling with Facebook's reaction to fake news and its role in the 2016 election.

Facebook disclosed in September that Russians under fake names used the social network to try to influence U.S. voters in the months before and after the 2016 election, writing about inflammatory subjects, setting up events and buying ads.

“We believe it is entirely possible that there will be a connection there,” Zuckerberg said when asked if there was overlap between Cambridge Analytica’s harvested user data and the political propaganda pushed by the Kremlin-linked Internet Research Agency during the 2016 presidential election, which Facebook has said was seen by some 126 million people.

In February, U.S. Special Counsel Robert Mueller, who is investigating possible links between Russia and Trump's campaign, charged 13 Russians and three Russian companies with interfering in the election by sowing discord on social media.

On Tuesday, Zuckerberg said he believed Facebook employees have been interviewed by Mueller's office.

Zuckerberg, who founded Facebook in his Harvard University dorm room in 2004, is fighting to prove to critics that he is the right person to go on leading what has grown into one of the world's largest companies.

On Friday, Zuckerberg threw his support behind proposed legislation requiring social media sites to disclose the identities of buyers of online political campaign ads.

(Reporting by Dustin Volz in Washington and David Ingram in San Francisco; Additional reporting by David Shepardson and Andy Sullivan in Washington, April Joyner and Lewis Krauskopf in New York; Writing by Bill Rigby; Editing by Meredith Mazzilli and Peter Cooney)